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Revolving Line of Credit and Lease Line
12 Months Ended
Dec. 29, 2012
Investments, All Other Investments [Abstract]  
Revolving Line of Credit and Lease Line

(7) Revolving Line of Credit and Lease Line

In May 2012, the Company renewed its revolving line of credit with Sovereign Bank, increasing the maximum from $1.0 to $2.0 million. Under the terms of the agreement, the Company can borrow up to the lesser of the $2.0 million or its ‘borrowing base’, which allows a portion of its receivables to be borrowed with the proportions varying by customer. The line of credit is secured by the accounts receivable and other assets of the Company. The revolving line of credit has a one-year term although management believes it is likely that Sovereign Bank and the Company will renew the line at the end of the term. At December 29, 2012, there was $500 thousand of borrowings under this line and its borrowing base at the time would have permitted an additional $900 thousand to have been borrowed.

At December 29, 2012, the Company had capital lease obligations outstanding totaling $200 thousand related to equipment financed by the Lease Line. (see Note 4).